FlexFinance IFRS as an enhancement to the range offered by Fiducia & GAD IT

17.10.2016

Thanks to efficient IT integration in conjunction with industrial processes, regulatory requirements can be implemented effectively, scope for strategic further development can be created and costs can be saved.

About the Bank

Our customer is a German direct bank that provides online savings products but would like to expand its business to include loans. It is part of a European banking group with over 280 branch offices and more than 600,000 private and corporate customers.

About the project

While Fiducia & GAD IT manage our customer’s IT landscape, a solution for calculating the IFRS ratios that would fit perfectly into the existing application environment had to be found. It was also essential for the bank to maintain a streamlined IT infrastructure. The data had to be delivered via a data pool from the existing system to the IFRS software which was to calculate the ratios for IFRS accounting. It was not intended to implement an all-round IFRS solution to which individual adjustments had to be made, but rather a modular solution from which only the modules that were really needed, could be selected.

FlexFinance IFRS satisfied the bank’s requirements because it provides modular groups consisting of standardised software that are designed for particular deal types or functions. Due to this, the bank could devise its own individual FlexFinance IFRS solution. In this case, a decision was made to use FlexFinance as a full general ledger for IFRS that contains a portfolio for financial instruments and non-financial instruments. With regard to the introduction of a new product entitled ‘Cash Loan’, FlexFinance will generate an appropriate cash flow plan, effective interest rate and relevant IFRS entries.

Since FlexFinance has standard interfaces, integration on any third-party source or target system is easy. These systems remain unchanged for IFRS. Once the ratios have been determined, they are made available for other applications at one central point although ratios that are already available are used as far as possible instead of re-calculating them.

Bearing in mind the constant further development of IFRS, the new accounting solution also had to be flexible for any new regulatory amendments, such as the new IFRS 9. With FlexFinance, a future-proof solution is ensured because the development of IFRS is constantly observed and adjustments are made immediately. In this way, FlexFinance supports the new requirements specified in IFRS 9 and provides a comprehensive set of tools. Since various organisational units at the bank will be involved in the switch from IAS 39 to IFRS 9, pre-configured workflows, which control and monitor processes, will be implemented. Thanks to continuous quality control, risks and weak points can be detected at an early stage and eliminated. This procedure ensures cost-effective and timely implementation.